ABSTRACT

The study examined the effects of government expenditure on the agricultural sector in Nigeria. The objectives were to; ascertain the effects of government expenditure (GEA), deposit money banks loan (DBA) and agricultural output (AGR) in Nigeria. The study employed time series data in its analysis. Data adopted in the study were generated from the Central Bank of Nigeria annual statistical bulletin 2016 and National Bureau of Statistics bulletin 2016. The ordinary least square (OLS) of multiple regression, the Johanson cointegration techniques, and the error correction model was used for the analysis. There is a positive relationship between GEA and DBA, while there is a negative relationship between real interest rate (RIR) and the dependent variable. Based on the above findings, the study recommends for an increase funding of the agricultural sector in Nigeria also ensure that the amount budgeted for the agricultural sector is actually spent on the development of the sector so that it can positively and significantly improve Agricultural production and output.